Press release
Addition of Integrated Security Platform Enables Networking Company to Expand Lineup of Security Solutions for Small and Medium Businesses
Bracknell - September 23, 2008 - NETGEAR®, Inc. (NASDAQGM: NTGR), a worldwide provider of technologically advanced, branded networking products, today announced the execution of a definitive agreement to acquire the assets of privately-held CP Secure, Inc.
Founded in 2002 and with an established engineering centre in Nanjing, China, CP Secure is a leading provider of integrated security solutions that protects organisations from Internet-originated web and email based malware threats. Its CSG family of products delivers network protection, web filtering and email security in an easy-to-deploy, intuitive and feature-rich platform. CP Secure's patent-pending stream-based scanning technology enables real-time scanning of high-volume web and email traffic without degrading network performance, achieving up to five times better scanning performance than its competitors.
Under the terms of the agreement, NETGEAR will pay $14.0 million in cash for CP Secure's assets. CP Secure will receive a total additional payout of up to $3.5 million in cash following closure of the acquisition if it achieves certain specified objectives. The acquisition is subject to various standard closing conditions and is expected to close in the fourth quarter. Following completion of the transaction, CP Secure's Chief Executive Officer, Shuang Ji, will become NETGEAR's Vice President of Engineering for security products.
"As SMBs increasingly rely on web 2.0 and email applications to conduct business with customers, partners, and vendors alike, SMBs are increasingly seeking effective and easy-to-administer integrated solutions to safeguard their networks and applications from Internet threats and ensure business continuity," said Patrick Lo, Chairman and CEO of NETGEAR.
"CP Secure's offerings complement our current network security offerings, which include the NETGEAR ProSafe® Wired and Wireless VPN Firewalls and Secure-Socket-Layer (SSL) VPN Concentrator. With an expanded security solution lineup that will incorporate CP Secure's integrated platform, we can provide organisations with robust, comprehensive, zero-hour protection for their network, web access and email traffic. We also believe that the easy-to-deploy, easy-to-administer and real-time scanning performance features of the CP Secure solution will resonate with our target small and medium business customers."